The companies that had their sweepstakes machines seized by police last month want their machines back and a court order directing Honolulu police and the city prosecutor to leave them alone.
PJY Enterprises, the company that distributes Products Direct Sweepstakes terminals, and five of six Oahu businesses that had the terminals in their arcades are suing the Honolulu Prosecuting Attorney and Police departments for return of the machines and an injunction preventing future seizures.
The lawsuit, filed in state court Friday, also names city Prosecutor Keith Kaneshiro and Police Chief Louis Kealoha.
A business in Pearl City where sweepstakes machines were seized from its arcade is not part of the lawsuit.
The companies claim that since there is no legal opinion prohibiting sweepstakes terminals from being used in Hawaii, the Sept. 27 seizures by Honolulu police violated their constitutional right to acquiring and possessing property and their rights against unreasonable searches and seizures and deprivation of property without due process.
Police seized 77 machines from arcades in Ewa Beach, Pearl City, Wahiawa, Waikiki and Waipahu and on Ward Avenue.
The following day, Kaneshiro said the machines were seized because they are illegal gambling devices.
The warrant used for the seizures says the machines violate state gambling promotion and gambling device possession laws.
No one has been arrested in connection with the seizures, police said.
Kaneshiro has said courts across the country, including Mississippi and Missouri, have determined that the machines are illegal gambling devices.
The companies claim that the machines do not violate state law and that their lawyer wrote Kaneshiro a letter challenging the accuracy of his comments but that Kaneshiro has yet to respond.
Keith M. Kiuchi, the lawyer who filed the lawsuit, said PJY doesn’t even have machines in Mississippi or Missouri. He said he has also offered to meet with prosecutors but has not heard back from anyone.
A spokesman for the city prosecutor said the office will not comment on the lawsuit at this time.
Products Direct Sweepstakes machines remain at several other gaming parlors on Oahu, despite warnings by police and Kaneshiro that they are illegal.
Kiuchi previously said the game is legal because people can enter the Products Direct Sweepstakes without inserting any money into the machines. The game is similar to McDonald’s nationwide Monopoly game, in which cash and prizes are awarded to participants even if they make no purchase, he said. Like the McDonald’s game, participants can write in to play.
Kiuchi has also pointed out that the Honolulu Liquor Commission has allowed the machines to be installed at 32 Oahu liquor establishments.
Liquor Administrator Greg Nishioka said the commission allowed the machines with the stipulation that the distributor would remove them if they are found by any law enforcement agency to be illegal.
